Examining the effects of capital on profitability by comparing the capital structures and syr of banks in the Turkish banking system

The banking sector is an integral part of the Turkish financial system. In this study, the effects of capital structures and capital adequacy ratios (CAR) of public and private banks operating in the Turkish banking sector on profitability were analyzed. In this context, three public and four private banks were considered using annual data for the period 2015–2024. Return on assets (ROA) and return on equity (ROE) were used as profitability indicators, and the analyses were conducted using panel data analysis. The findings show that CAR has a positive and significant effect on ROA in both public and private banks. However, this effect is partially negative in public banks and positive in private banks in terms of ROE. However, it was determined that the debt/equity ratio and leverage ratio generally negatively affect profitability.